Why CaesarStone's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of CaesarStone jumped as much as 13% today after releasing earnings.

So what: Fourth-quarter revenue was up 12.6% to $76.2 million, and net income nearly doubled to $10.8 million, or $0.31 per share. Analysts expected revenue of only $73.2 million and earnings of $0.30 per share.

Now what: Even better than last quarter's earnings were the company's guidance of revenue of $330 million to $340 million next year. Analysts expected only $327 million in revenue next year, so the company is expected to easily outpace expectations. Shares now trade at 14 times next year's earnings estimates, and at that price I think there's still upside in shares going forward.

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